Reconfigure

Background . Organization design is a subject that is covered in business school courses such as strategy implementation, organizational theory, and organizational behaviour. However, students sometimes perceive organization design concepts as abstract. Aim . To develop and pilot a simulation that may improve participants’ understanding of two key organization design concepts - work process interdependency and coordination cost . In addition, to develop an approach that may contribute to better operationalization of these concepts in future research. Method . Participants are divided into groups representing departments and are then asked to reconfigure the groups while considering both benefits (reduced coordination costs) and costs (of reconfiguration). The exercise is supported by a MicrosoftExcel TM tool, quantifying the concepts of interdependency and coordination cost. Results . The pilot application of the simulation achieved its pedagogical aims. The participants performed somewhat better than anticipated (some possible causes are discussed). Conclusions . Experiential simulations can be used to convey complex organization design principles to students and managers. They may also be used to study the capacity of individuals and groups to take into account multiple interdependencies in optimizing a design at the individual, group and system level. Recommendation . Simulations should be used to enhance the pedagogical value of organization design lectures (or seminars for employees in organizations).